Rapid advancements by artificial intelligence (AI) and soaring demand for that technology are creating a host of infrastructure demands. With that comes a set of new, potentially compelling investment opportunities.
2025 is poised to be another year in which ETF launches break records or come close to doing so. So advisors and investors have an understandably difficult time in assessing which rookie funds have long-term staying power.
Investors are always on the hunt for the next disruptive theme or megatrend. AI has delivered the goods on that front.
If AI is the defining megatrend of markets right now, electrification is the engine driving it forward. Data centers are showing huge demand for electricity, but they aren't alone; numerous key segments are creating a massive need for electricity.
The theme of artificial intelligence (AI) will continue to captivate investors. Without electricity, however, the lights could easily turn off on that investing idea.
The ALPS Electrification Infrastructure ETF (ELFY) delivered strong performance in May, returning 8.91%. The newest addition to the SS&C ALPS Advisors lineup offers targeted exposure to companies benefiting from the rising demand of electricity.
U.S. electricity sales growth has been relatively slow over the past 20 years, averaging around 0.4% annually. However, many expect electricity demand will rise more significantly in the coming years, with projections suggesting growth exceeding 8% through 2029.